Question from Daniel B., Wells
Marc, is it a good time to buy?
Hi Daniel, As of this writing on Feb. 22, there are 1,568 single family homes available for sale in the state of Maine. In comparison when I started in this business in 2005 there were over 22,000 homes listed on the MLS! We are in a seller’s market and have been for about 2 1/2 years. Inventory is scarce. Although no Realtor has a crystal ball, the Realtor Association predictive analysts believe that we will be in this market for the next 12-18 month with prices rising 8 to 15 percent depending on your market. So everyone who has been or is sitting on the sidelines will have that price increase with fewer homes available to purchase. Mortgage rates are another unknown in this business and as they are predicted to rise in the next 12 months. This will equate to a lower price point of a home to qualify for buyers entering the market. Average single family home costs in Maine have risen $294,000 up over 30 percent from five years ago. Buyers want to purchase but just can’t find the inventory and some sellers may want to sell but can’t find alternative housing to move to. So it’s tough out there. If you’re buying, I don’t recommend waiting. I recommend having your financing in order to put your best foot forward with an aggressive, simplified offer to a seller on a home you want to purchase.
Marc Cardullo is a real estate broker and owner of Freedom Realty in Saco. To ask a real estate question, email Marc at mcardullo@gmail.com
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